A growing number of developed country govments in recent years have adopted a hostile attitude towards foreign direct investments undertaken in their markets by state-owned enterprises (SOEs),the latter often based in China.The broad reason for this hostility is the belief that state-owned enterprises pursue non-commercial objectives with resulting damage to host economies.This paper argues that the empirical evidence shows SOEs are increasingly exhibiting market-owned behavior.Furthermore,any adverse consequences of non-commercial behavior are likely to be realized primarily by the SOEs themselves.